Twitter IPO Reignites Controversy Over JOBS Act

Twitter’s “stealth” IPO has revived lingering doubts about the ultimate benefits and potential pitfalls inherent in the JOBS Act. Heavily lobbied by Silicon Valley, the JOBS Act includes provisions allowing companies with less than $1 billion in revenue to reduce the amount of financial information and data on executive compensation they need to disclose before going public. Critics say that a recent uptick in IPOs, which some credit to the JOBS Act, would have occurred in any case, and that investor protections have been sacrificed.